As 2018 nears its close, there are some important trading levels to watch in the major forex pairs and in gold and silver.
AUD/USD has held around its October low at 7023/18. This is key and holding here forms a bullish double bottom pattern in oversold conditions. Buyers could initially target 7050/70 before strong resistance at 7100/10.
However, a break below 7000 is our sell signal targeting 6975/70, 6940/35 and 6920/10.
NZD/USD has bottomed exactly at minor support at 6705/95 but below here meets strong support at 6675/65. Long positions need stops below 6645.
We have first resistance at 6710/20 and then strong resistance at 6760/70. Try short positions with stops above 6785.
EUR/JPY and EUR/USD
EUR/JPY offers a selling opportunity at 127.20/30, with stops best put above 127.55. A break higher targets 127.65/70 and quite strong resistance at 128.15/25.
If it fails to beat 127.20/30, short positions could target 126.75, 126.45 and perhaps as far as 126.20/10.
EUR/USD longs at 1.1370/60 have gained again as the pair shot higher to 1.1400/05 and 1.1430/35. We have key resistance at 1.1470/80 today. A break higher (and a weekly close above here tonight for confirmation) is a medium-term buy signal. Hold long positions, with stops put below 1.1340.
A break lower today, however, targets 1.1330 and 1.1315/10. Below 1.1300 retests the December low at 1.1270/65.
USD/CAD bulls are in full control and our targets of 1.3600/10 and 1.3630/40 have been hit. Long positions should target 1.3690/99.
Downside is limited until we see a sell signal, but we could turn at any time in what are overbought conditions. There is minor support at 1.3620/10, but below 1.3600 risks a slide to the three-week trendline support at 1.3550/40.
Gold and silver
Gold has spiked a little above the four-month trendline resistance at 1272/74 to form a small double top, but not enough to trigger stops.
Failure to hold above 1265 is another sell signal targeting 1260/59, 1255 and perhaps as far as the strong support at 1251/49 for a buying opportunity. Try long positions with stops below 1248.
There is key resistance at 1273/75. Try short positions with stops above 1280. A sustained break higher (and a weekly close above 1280 for confirmation) is a strong medium-term buy signal. Buyers should hold into January.
Silver is testing key resistance at 1520/30. Holding below 1535 turns the outlook negative. A weekly close above 1540 tonight is a medium-term buy signal. Holding below 1515 confirms a more negative outlook and risks a slide to 1500/1490 today.
Technical Analyst & Trader
The content of this article is the personal opinion of the author and not InterTrader. You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.